Pursuant to the terms of the Agreement, SugarBud may draw down capital on an as-needed basis in a series of equity offerings of up to a total of $25.0 million CAD over a twenty-four month period ending November 2020. The Company will initiate any draw-down by providing Alumina a written request indicating the proposed amount and timing of the draw-down, which Alumina will have the option to accept. Under the Agreement, SugarBud will offer units of the Company, each unit consisting of one common share in the capital of the Company (a “Common Share”) and one-half of one common share purchase warrant (each whole warrant a “Warrant”). The unit price will be determined at the time of each draw-down at negotiated discounts ranging from 15% to 25% of the market price. Alumina will not be required to complete a draw-down if the market price of the Common Shares on the TSX Venture Exchange (the “TSXV”) as of the trading day prior to closing of the draw-down is below the unit price. The exercise price of the Warrants is expected to be at a 40% premium over the market price at time of issuance, or such lesser premium as may be determined by the mutual agreement of SugarBud and Alumina. Each whole warrant will entitle the holder to purchase one additional Common Share for a period of 36 months from the closing of the applicable draw-down. Closing of each draw-down will be subject to a number of conditions, including receipt of the approval of the TSXV. In no event may the securities issuable to Alumina pursuant to a draw-down, when aggregated with the Common Shares and Warrants held by Alumina on the closing date of such draw-down, exceed 9.99% of the outstanding Common Shares. Each draw-down will be completed on either a private placement or prospectus basis.

About Alumina

Alumina is a subsidiary of Alumina Partners LLC, a leading institutional investor in the Canadian cannabis space.

About SugarBud

SugarBud is a Calgary based emerging cannabis company engaged in the development, acquisition, production and distribution of cannabis in Canada.

This news release may include forward-looking statements including opinions, assumptions, estimates, the Company’s assessment of future plans and operations, and, more particularly, statements concerning the equity facility with Alumina, including Common Shares and Warrants to be issued in connection therewith and proceeds to be raised pursuant thereto. When used in this document, the words “will,” “anticipate,” “believe,” “estimate,” “expect,” “intent,” “may,” “project,” “should,” and similar expressions are intended to be among the statements that identify forward-looking statements. The forward-looking statements are founded on the basis of expectations and assumptions made by the Company which include, but are not limited to, the timely receipt of all required TSXV approvals. Forward-looking statements are subject to a wide range of risks and uncertainties, and although the Company believes that the expectations represented by such forward-looking statements are reasonable, there can be no assurance that such expectations will be realized. Any number of important factors could cause actual results to differ materially from those in the forward-looking statements including, but not limited to: regulatory and third party approvals; the ability to implement corporate strategies; the state of domestic capital markets; the ability to obtain financing; changes in general market conditions; industry conditions and events; the size of the medical marijuana market and the recreational marijuana market; government regulations, including future legislative and regulatory developments involving medical and recreational marijuana; construction delays; competition from other industry participants; and other factors more fully described from time to time in the reports and filings made by the Company with securities regulatory authorities. Please refer to the Company’s annual information form (“AIF”) for the year ended December 31, 2017 and management’s discussion and analysis (“MD&A”) for the three and nine months ended September 30, 2018 for additional risk factors relating to the Company. The AIF and MD&A can be accessed under the Company’s profile on www.sedar.com.

Except as required by applicable laws, the Company does not undertake any obligation to publicly update or revise any forward-looking statements.

Neither the TSXV nor its regulation services provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this release.

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